Could this large percentage decline be presenting an opportunity/entry point for aggressive bargain hunters? Yes!
The decline has the SSE index testing the bottom of its 3-year trading range and 5-year rising support at (1), while momentum is now the lowest since the 2009 lows at (2).
Setting a stop just below the dual support test at (1) looks to be a nice entry point for aggressive traders open to owning hard hit assets.
Stops are very much needed at this price point, as the next key horizontal support comes into play at the 20,000 level, which is a large percentage below current prices!
The iShares MSCI China Index Fund (MCHI) was unchanged in premarket trading Friday. Year-to-date, MCHI has declined -11.77%, versus a 9.42% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.